Question: The discussion board will include sensitivity analysis output from a hypothetical problem, and you will be asked to write an executive summary based on the

The discussion board will include sensitivity analysis output from a hypothetical problem, and you will be asked to write an executive summary based on the output with respect to the economic interpretation of the problem.(Original post required and then 2 follow-up (response) posts to others.)
Instructions for Group Discussion
Given the following output for the optimal solution for a 4 variable (named BR, IC, COLA, and PC) and a 4 resource (constraint) problem; where the optimal objective function value is 1000(and it is a maximization problem). Please write a short summary that answers the following questions:
Suppose the price of a BR increases from 50 to 60 and the price of a PC decreases from 80 to 50. Does the current solution remain optimal (in terms of the variables >0 in the optimal solution)?
Suppose the price of a BR increases from 50 to 70 and the price of a PC increases from 80 to 90. Does the current solution remain optimal (in terms of the variables >0 in the optimal solution)?
How much would you pay for an additional unit of Resource 2(Constraint 2)?
Suppose you were to acquire 150 additional units of Resource 1(Constraint 1), what would your new objective value be?
In your follow-up posts please clarify any issues or justify your answers.
Variable Cells
Cell Name Final Value Reduced Cost Objective Coefficient Allowable Increase Allowable Decrease
$B$2 Variabies BR 0-3050301E+30
$C$2 Variables IC 0-2020201E+30
$D$2 Variables COLA 33.3333330301E+306
$E$2 VariabiesPC 0-2080201E+30
Constraints
Cell Name Final Value Shadow Price Constraint R.H. Side Allowable Increase Allowable Decrease
$F$5 Resource 150025001E+30380
$F$6 Resource 20061E+306
$F$7 Resource 3133.33333010123.33333331E+30
$F$8 Resource 433.3333330825.333333331E+30

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!